Weight-loss medications have exceeded revenue expectations, shaking up stocks across various industries. Eli Lilly and Novo Nordisk, two major pharmaceutical companies, have reported significant sales growth for their respective weight-loss drugs, Mounjaro and Wegovy. In the third quarter, Mounjaro sales reached an impressive $1.41 billion, showing a tremendous increase of over 650% compared to the previous year. Similarly, Wegovy sales soared to 9.6 billion kroner ($1.37 billion), marking a remarkable surge of 734% from a year ago. This surge in sales has contributed to a nearly 40% increase in revenues for both companies during the quarter.
Despite the impressive sales figures, both Eli Lilly and Novo Nordisk have faced challenges in meeting the growing demand for their weight-loss medications. In the past year, Mounjaro and Wegovy have frequently experienced shortages in the US market. As a result, Novo Nordisk plans to limit certain doses of its drug for the next year, aiming to stabilize the supply situation. Eli Lilly's Chief Financial Officer, Anat Ashkenazi, acknowledged in an interview that the supply issue for Mounjaro will persist for a considerable period, even before receiving approval from the US Food and Drug Administration as a weight-loss treatment.
Maintaining an adequate supply of Mounjaro is crucial for Eli Lilly, as the drug plays a pivotal role in the company's near-term earnings. Analysts from Bloomberg Intelligence highlighted the significance of Mounjaro to Eli Lilly's financial performance even before the company's results were released. The stocks of both Eli Lilly and Novo Nordisk have surged by over 50% this year, surpassing the performance of various other industries. Competitors, such as Pfizer Inc. and Amgen Inc., are also entering the weight-loss drug market, further indicating the market's potential.
Research is beginning to reveal additional benefits of these weight-loss treatments, including potential advantages for heart and kidney disease. Eli Lilly is currently testing higher doses of Mounjaro to determine its efficacy in shedding more pounds. Additionally, both Eli Lilly and Novo Nordisk are exploring the combination of their weight-loss drugs with other treatments to achieve better results and reduce unwanted side effects.
Following the outstanding sales performance of Wegovy and Ozempic (a lower-dose version of Wegovy approved for diabetes treatment), Novo Nordisk has raised its full-year sales and profit outlook for the third time this year. The company anticipates a potential increase in operating profit of up to 46% due to the sales of these drugs. Ozempic sales alone reached 23.9 billion kroner ($3.4 billion), representing a 56% growth compared to the previous year.
While the weight-loss medication trend seems to be primarily concentrated in the US, with 90% of Mounjaro sales coming from the US market and 95% of Wegovy sales also being in the US, it is likely to attract further attention globally. The potential for weight-loss drugs to address various health conditions beyond obesity highlights the promising future of this market. Additionally, as more companies enter the space, competition is expected to intensify, ultimately benefiting patients seeking effective weight-loss treatments.